The Social Security withholding rate for 2017 remains at a rate of 6.20% with the Social Security wage base increased for 2017 to a limit of $127,200. Accordingly, the maximum Social Security withholding for 2017 will be $7,886.40.

In regards to Medicare withholding, both the employer and employee rates will remain 1.45% on the first $200,000 in wages earned by an employee. The WITHHOLDING RATE remains at 2.35% on wages paid in excess of $200,000 in 2017. (This two-tiered withholding rate for Medicare is only on the withholding side. The employer portion of Medicare tax will remain unchanged at 1.45% with an unlimited taxable wage base.)

If you have any questions regarding this information, please contact Jackie Roberts at ext. 113.

MINIMUM WAGE INCREASE - STATE OF OHIO

The minimum wage in the State of Ohio increases to $8.15 ($4.08 for tipped employees) per hour effective January 1, 2017